Money exam2
which of the following is most commonly used as a base index for setting rates for adjustable-rate mortgages? - Federal Reserve Bank - Karl's Mortgage Calculator - Realtor.com - London Interbank Offered Rate - Bankrate.com
London interbank offered rate
which of the following is an example of a conventional mortgage? - An FHA mortgage - A buy-down - A fixed-rate mortgage - A shared-appreciation mortgage - A home equity loan
a fixed-rate mortgage
As a result of the COVID-19 pandemic, new cons resulted in several scams including: - fraudulent COVID-19 testkits and treatments. - fake coronavirus charities. - stimulus check swindles. - work-at-home scams. - All of these choices are correct.
all of these choices are correct
most people do not select a place of residence based on : - lifestyle - needs - values - attitudes - credit score
credit score
An example of a financial services cooperative is a: - credit union. - sports store. - grocery store. - pawnshop. - payday loan company.
credit union
A __________blank is a building that contains exactly two housing units. - mobile home - duplex - condominium - prefabricated home - cooperative
duplex
Emma plans to rent instead of buying her housing. which advantage of renting will she realize? - Tax deductions - Ease of mobility - Property value increases - Restricted lifestyle - Home remodeling flexibility
ease of mobility
which of the following is an advantage of renting an apartment? - No tax benefits - Easy to move - Limitations regarding remodeling - Restrictions regarding pets - Higher utility expenses
easy to mvoe
a conventional mortgage usually has: - a variable interest rate. - a government guarantee. - a balloon payment. - equal payments. - a payment cap.
equal payments
which of the following is usually not in written form? - express warranty - general warranty - product warranty - implied warranty - specific warranty
implied warranty
Which is the following information is required on food labels? - Ingredients - Unit pricing - Generic name - Common product name - Brand name
ingredients
For a situation to qualify as a class-action suit, it must: - involve several people who have suffered the same problem. - involve a national retail store. - be a case that would not be handled by an attorney. - involve low-income individuals. - be a legal problem against a government agency.
involve several people who have suffered the same problem
Arbitration differs from mediation in that arbitration: - involves government officials. - requires the use of a lawyer. - is only available in certain states. - allows compromise through negotiation. - is legally binding.
is legally binding
Which organization tests products for electrical and fire safety to assure items meet safety standards? - Consumers Watch - Better Business Bureau - Consumer Product Safety Commission - Underwriters Laboratories - Federal Trade Commission
underwriters laboratories
the assessed value of your home is the : - value used to calculate property taxes. - estimated current market value. - price you paid to purchase the home. - amount of money a buyer has offered to purchase the home. - cost basis assigned to your home by your insurance company.
value used to calculate property taxes
John Frey has a piece of paper that guarantees the conditions, under which he can return, replace, or repair an item that he has purchased. What is it he most likely has? - Coupon - Rebate - Warranty - Rain check - Class action suit
warranty
The Homeowners Protection Act requires that a PMI policy be terminated automatically when a homeowner's equity reaches __________blank percent of the property value at the time the mortgage was issued. - 5 - 9 - 12 - 18 - 22
22
Tyson Fields is applying for a $100,000 mortgage. He can select either a $595 monthly payment with no points or a $515 payment with two points. How many months will it take Tyson to cover the cost of the discount points if he takes the lower monthly payment? - 6 - 10 - 18 - 25 - 48
25
To avoid scams of online used-car sellers: - research the seller's reputation and background. - do a title check to confirm the seller's name and make sure the car is not stolen - beware of vehicle photos with tempting low prices - check for recalls and the safety record of the vehicle. - all of these choices are correct
all of these choices are correct
what is the term used to describe the reduction of the balance owned on loan with each payment made over a period of time? - A buy-down - Shared-appreciation - Prepaid interest - Amortization - A rate cap
amortization
money that is usually deposited with the lending institution for the payment of property taxes and homeowner's insurance is called: - points. - an escrow account. - a rate cap. - closing costs. - a buy-down.
an escrow account
which home improvement is least likely to increase the value of your home? - Energy-efficient features - A remodeled kitchen - An extra bathroom - A finished basement - An exercise room
an exercise room
private label products are those that: - are sold as government surplus. - require nutritional labeling information. - provide freshness information on the package. - are distributed by all national chain stores. - are sold by one chain of stores.
are sold by one chain of stores
A newly married couple is having trouble affording a home. What type of mortgage arrangement would reduce the monthly payment as a result of an interest rate subsidy from a builder or real estate developer? - FHA-insured loan - Balloon mortgage - Buy-down - Shared-appreciation mortgage - Growing-equity mortgage
buy-down
which of the following is a form of housing in which the units in a building are opened by a nonprofit organization? - Mobile home - Condominium - Cooperative housing - Duplex - Townhouse
cooperative housing
the appraised value of your home is the : - value used to calculate property taxes. - estimated current value of the property. - price you paid to purchase the home. - amount of money a buyer has offered to purchase the home. - cost remaining after the down payment.
estimated current value of the property
which of the following is a social factor that would influence a consumer's buying decision? - hobbies - inflation - tax rates - gender - marital status
hobbies
What type of warranty covers only certain aspects of the product, such as parts, or requires the buyer to incur part of the costs for shipping or repairs? - Limited warranty - Full warranty - Implied warranty - Warranty of title - Express warranty
limited warranty
renting is more advantageous than buying a home when you are seeking: - lower initial costs. - fewer restrictions regarding remodeling. - a long-term investment. - tax deductions for property taxes. - permanence of residence.
lower initial costs
The process of resolving conflicts between a customer and a business with the use of a third party whose recommendations are nonbinding is called: - mediation. - arbitration. - a class action suit. - a product lawsuit. - a small claims court hearing.
mediation
most used cars bought from private owners have: - no implied warranties. - a 30-day return privilege. - a limited warranty. - no express warranty. - a government-supported repair guarantee.
no express warranty
A scam that involves malicious software or an email attachment that places a virus or worm in the user's computer or in a server that directs traffic on the internet is called: - a foreign scam. - a bogus campus card scheme. - pharming. - an internet pyramid scheme. - phishing.
pharming
the purpose of a rate cap with an adjustable rate mortgage is to : - minimize interest costs. - prevent changes in the amount of the monthly payment. - increase negative amortization. - restrict the amount by which the interest rate can increase or decrease during the ARM term. - lower the escrow account.
restrict the amount by which the interest rate can increase or decrease during the ARM term
most consumer complaints are resolved by: - legal action - assistance from a government agency - contacting a company's headquarters - returning to the original sales location - obtaining help from an action line
returning to the original sale location
A loan based on the high equity in a home that provides the homeowner with tax-free income and which is paid back when the home is sold or the homeowner dies is called a(n): - conventional mortgage. - growing equity mortgage. - second mortgage. - reverse mortgage. - adjustable rate mortgage.
reverse mortgage
one service provided by a real estate agent when selling your home is: - providing legal advice. - completing a mortgage application. - screening potential buyers. - making needed repairs. - conducting a home inspection
screening potential buyers
a cooperative is designed to: - solve consumer complaints. - test consumer products for quality. - sell products or services to members at reduced prices. - obtain brand-name items for less than wholesale cost. - lobby for changes in consumer protection laws.
sell products or services to members at reduced prices
Aaron Garza likes to play golf. This hobby would be an example of a(n) _____________ factor that influences his purchasing decision. - economic - social - personal - global - financial
social
The Sears Kenmore dishwasher is an example of a: - national brand. - store brand. - generic brand. - local brand. - regional brand.
store brand
the sticker price of a car refers to: - the amount of government taxes on a new car. - the cost of repairing a used car which is for sale. - the list of optional equipment that may be added to a car. - the suggested retail price of a new car. - a comparison of costs and performance of comparable cars.
the suggested retail price of a new car
